AUSTIN, Texas - Texas homeowners can now apply for assistance to help with past due mortgage payments and related expenses due to COVID-19.
The Texas Department of Housing and Community Affairs (TDHCA) has launched the Texas Homeowners Assistance Fund with more than $840 million allocated to help qualified homeowners from the American Rescue Plan Act of 2021.
Eligible households could receive up to $40,000 for past due mortgage payment assistance, and up to $25,000 to pay past due property taxes, property insurance, and delinquent homeowner association (HOA) and/or condo association fees.
Payments will be sent directly to mortgage servicers and/or appropriate property payees (tax authorities, insurance companies, or HOAs) once a homeowner’s application has been approved, says TDHCA.
To qualify for assistance, Texas homeowners must meet the following criteria:
- have fallen behind on one or more of mortgage loan, property tax, property insurance, and/or HOA association fee payments
- have a household income at or below 100% Area Median Income
- own and occupy a home in Texas as a primary residence
- experienced a qualified financial hardship after January 21, 2020, due to the COVID-19 pandemic
Homeowners should have the following documentation on-hand to help with their application:
- Proof of Identification. The homeowner must provide a current or expired form of identification, such as a driver’s license, state identification card, voter registration card, school registration form, library card, passport, student ID, Social Security card, military ID, naturalization certificate, lawful permanent residency card, employment authorization document, or birth certificate.
- Proof of Income. The homeowner must enter a monthly income figure that is equal to or less than 100% of AMI. On the income screen, applicants must provide income documentation, such as paystubs.
- Proof of Occupancy. The homeowner must provide proof that the property is their primary residence, e.g., a utility bill for the property in the homeowner’s name and address. In lieu of supporting documentation, a homeowner attestation will be accepted.
- Delinquent Statement. A statement or statements showing delinquent mortgage loan payments and/or delinquent property charges, which include delinquent property taxes, HOA fees or liens, or insurance.
TDHCA says this assistance is designed to help homeowners avoid mortgage delinquencies, defaults, foreclosures, and help prevent the displacement of homeowners experiencing financial hardship after January 21, 2020.
Homeowners in need of assistance can click here for information on eligibility and to submit their application, or for additional assistance homeowners can call 1-833-651-3874.
In addition, TDHCA says the fund is in the process of partnering with organizations across the state to assist households with completing applications.
To date, TDHCA says it has provided approximately $5 million in mortgage payment relief through two limited pilot programs.
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